Value of British homes has 'dropped by a third' since 2007

House prices in the UK have experienced one of the most dramatic falls in Europe since the housing market peaked in 2007, according to figures released by the RICS European Housing Review.

When taking into account the high levels of inflation that have prevailed in Britain, the average home has seen a third of its real value disappear as prices continue to falter.

The report shows the significance of the decline in the UK's housing market by comparing it with that seen in some of Europe's other countries that were badly affected by the crash; Spanish homes have seen a 27 per cent drop over the past five years, whilst Italy witnessed a less extensive fall of 14 per cent.

Taking this into account, the 33 per cent decline in the value of British houses reveals the extent to which the UK property sector has suffered.

In light of the new figures, the expanding buy-to-let market seems to offer a continued opportunity to landlords - both at home and abroad - as these areas have continued to grow.

Investors in Britain could take advantage of the latest research to purchase property now, especially given that January actually saw the Land Registry House Price Index report a monthly rise in value of 1.1 per cent, potentially leading to a recovery.

And considering the substantial drop also seen in Spain and Italy, these areas could also present profitable opportunities to those looking overseas.

Obviously, these are big steps to take, and protecting such investments is vital. To give holdings added security, landlord insurance policies exist to aid those looking in the UK, whilst holiday home insurance can provide cover to anyone making purchases abroad.

Indeed, the extensive fall in British housing prices since the European peak in 2007 has been reflected by their performance in relation to other markets on the continent, and the potential for investment in the lettings arena appears clear given current levels.